The Employees' Provident Fund Organization (EPFO) has reduced penal charges for employers who fail to deposit their employees' provident fund, pension, and insurance contributions on time.According to a notification issued by the Ministry of Labour on Saturday, defaulters will now be charged a penalty of 1% per month or 12% per annum for outstanding contributions under the Employee Pension Scheme (EPS), Employees' Provident Fund (EPF) Scheme, and Employees' Deposit Linked Insurance (EDLI) Scheme.This marks a reduction from the previous maximum penalty of 25% per annum.Previously, penalties were calculated at 5% per annum for defaults less than two months, 10% for defaults between two to four months, 15% for defaults between four to six months, and 25% for defaults exceeding six months.This revision is expected to lessen the financial burden on employers who default for extended periods.However, there will be no significant changes in penalties for employers who default for less than four months.Currently, it is mandatory for employers to submit the previous month's returns to EPFO by the 15th of each month, and any delay beyond this is considered a default.
The Employees' Provident Fund Organization (EPFO) has reduced penal charges for employers who fail to deposit their employees' provident fund, pension, and insurance contributions on time.According to a notification issued by the Ministry of Labour on Saturday, defaulters will now be charged a penalty of 1% per month or 12% per annum for outstanding contributions under the Employee Pension Scheme (EPS), Employees' Provident Fund (EPF) Scheme, and Employees' Deposit Linked Insurance (EDLI) Scheme.This marks a reduction from the previous maximum penalty of 25% per annum.Previously, penalties were calculated at 5% per annum for defaults less than two months, 10% for defaults between two to four months, 15% for defaults between four to six months, and 25% for defaults exceeding six months.This revision is expected to lessen the financial burden on employers who default for extended periods.However, there will be no significant changes in penalties for employers who default for less than four months.Currently, it is mandatory for employers to submit the previous month's returns to EPFO by the 15th of each month, and any delay beyond this is considered a default.
